A recent study from the Secure Retirement Institute has shown that consumers who are more educated about annuity products seem to have stronger feelings about them. In fact, according to a recent ThinkAdvisor article, the increased knowledge leads to more positive views.
Study participants took an annuity knowledge quiz and answered a series of questions about whether they had positive or negative views about annuities. Less than half of the participants with scores of 0 to 3 on a 10-point scale expressed any opinions about annuities. Of that 46%, 27% said they had positive views and 19% said they had negative views. On the contrary, those with scores of 7 or higher were much more likely to have opinions about annuities. Of these participants, 31% had negative views, but a whopping 63% had positive views.
SRI researchers have concluded that consumers who have less knowledge about annuities may be more susceptible to negative press coverage of annuities, impacting their views. In order to combat this misinformation, the researchers suggest that financial advisors and annuity manufacturers should find engaging ways to teach potential clients about the features and benefits of these financial tools. It has also been suggested that non-traditional forms of learning, like online tools and games, might help increase awareness and knowledge.
Written by Rachel Summit